Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Improved fuel efficiency by 20 percent since 1998, saving more than 40 million gallons of diesel fuel in 2009.
• Operates the cleanest locomotive fleet in North America, with more than 75 percent of locomotives certified under existing EPA standards.
• Spent approximately $6 billion since 2000 to purchase new, environmentally friendly locomotives; added more than 3,400 new fuel-efficient locomotives; retired more than 2,300 older, less-fuel-efficient locomotives; and overhauled or rebuilt almost 3,200 locomotive diesel engines.

Social Achievements

• Reduced employee reportable injury rate by 50 percent since 2001.
• Achieved a 37 percent reduction in rail crossing accident rate and a 34 percent reduction in derailment reportable rate since 2001.
• Donated more than $13 million in community giving in 2009 and supported more than 600 nonprofit organizations.
• Offered nationally recognized employee wellness program.

Governance Achievements

• Board of Directors comprised of at least a majority of independent directors.
• Has in place codes of ethics and conduct to guide employees and leaders.
• Commitment to a diverse workforce exceeding federal and state Equal Employment Opportunity laws.

Climate Goals & Targets

Environmental Challenges

• Climate change legislation could have an adverse impact on operations and financial performance.
• Economic challenges impacting employment.

Mitigation Strategies

• Continuing fuel conservation efforts through better locomotive technology, engineer training, and employee development.
• Auxiliary Work and Training Status (AWTS) agreements to keep furloughed employees trained and ready for work.

Supply Chain Management

Responsible Procurement

• Efforts to increase minority- and woman-owned supplier base.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 2006 Sustainability Reporting Guidelines

Sustainable Products & Innovation

• Genset locomotives
• Green Goat locomotives

Awards & Recognition

• BusinessWeek Best Places to Launch a Career
• CALSTART Blue Sky Merit Award
• C.H. Robinson Intermodal Rail Carrier of the Year
• Corporate Responsibility Officer 100 Best Corporate Citizens
• Department of Defense Freedom Award
• Eastman Chemical Company Supplier of Excellence Award
• Forbes Reputation Rankings
• Fortune Most Admired Railroad
• General Electric Excellence in Customer Centricity Award
• General Motors Supplier of the Year
• G.I. Jobs Top Military-Friendly Employer
• Great Plains Minority Supplier Development Council Corporation of the Year
• Harbor Association of Industry & Commerce of Southern California Salute to Industry Award
• Human Resource Executive Most Admired for Human Resources
• Military Officers Association of America Distinguished Service Award
• National Business Group on Health Best Employers for Healthy Lifestyles
• Susan G. Komen for the Cure Outstanding Volunteer Award
• Toyota On-Time Service Performance and Customer Service
• Toyota Top Railroad in Customer Service
• TRANSCAER National Achievement Award
• UnitedHealth Group Apex Award
• UPS Outstanding Peak Season Performance

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions rate from Union Pacific locomotives by 3 percent on a gross-ton mile basis compared to 2009.
• Improved fuel efficiency by 3 percent, saving more than 27 million gallons of diesel fuel.
• Increased by 8 percent the number of gross-ton miles of freight moved by distributed power technology, generating approximately 4 to 6 percent fuel savings compared to standard locomotive power, resulting in fewer emissions.
• Retired roughly 300 older, less fuel-efficient locomotives and overhauled or rebuilt approximately 500 locomotive diesel engines to run cleaner and more efficiently.
• Found new uses for 93 percent of the wood railroad ties removed from active rail lines and reduced the amount of paper used in our business by 20 million sheets.

Social Achievements

• Employees recorded the safest year in company history with a 1.37 reportable injury rate, a 6 percent improvement over the previous best of 1.45 established in 2009.
• Reportable derailment rate declined 26 percent from 2000 to 2010 and 6 percent in 2010 compared to 2009.
• Rail-crossing accident rate declined nearly 34 percent from 2000 to 2010.
• Conducted more than 7,300 UP CARES outreach and training events reaching more than 450,000 people in 2010.
• Provided training for approximately 3,500 local, state, and federal first responders.
• Donated more than $14 million and supported more than 2,500 nonprofits in 2010.

Governance Achievements

• Board of directors composed of independent directors except for our chairman and CEO.
• Codes of ethics and conduct in place: Union Pacific Corporation Code of Ethics for the CEO and Senior Financial Officers; Statement of Policy on Ethics and Business Conduct for Employees; Union Pacific Corporation Code of Business Conduct and Ethics for Members of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Economic recession in 2009 reduced the total amount of freight shipped, therefore reducing overall emissions. As the economy recovered in 2010, the amount of goods requiring transportation increased, as have our total fuel consumption and emissions.

Mitigation Strategies

• Investing in more fuel-efficient locomotives, retrofitting older locomotives to be more environmentally friendly and implementing more efficient operating practices.
• Fuel Masters Unlimited program to reward locomotive engineers for fuel-saving efforts.

Supply Chain Management

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Transition Risks

• Future legislative and regulatory action on climate change could affect our operations and financial performance

Reporting Standards

Frameworks Used: Global Reporting Initiative’s 2006 Sustainability Reporting Guidelines

Sustainable Products & Innovation

• Genset locomotive
• Green Goat locomotive
• Aero Wedge

Awards & Recognition

• Bloomberg BusinessWeek Top 50
• Centennial Corporate Partner of the Year
• Computerworld Top Green-IT Organizations
• Corporate Responsibility 100 Best Corporate Citizens
• Desert Peak Awards
• Diversity Careers in Engineering and Information Technology Best Diversity Company
• Eastman Chemical Company Highest Level Supplier Excellence Award
• Komen for the Cure® Outstanding Volunteer Group Award
• Lowe’s Home Improvement Rail Carrier of the Year
• G.I. Jobs Top Military-Friendly Employers
• Governor’s Environmental and Economic Leadership Award
• Human Resource Executive 50 Most Admired for HR
• Military Times EDGE Best for Vets Employers
• National Business Group on Health’s Best Employers for Healthy Lifestyles
• National Governors Association Outstanding Collaboration with States
• Owens Corning Global Logistics Carrier Excellence
• Toyota Top Railroad in On-Time Service Performance and Customer Service
• TRANSCAER® National Achievement Award
• UnitedHealth Group Apex Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social Impact
• Governance & Ethics

Environmental Achievements

• Purchased 100 new fuel-efficient locomotives in 2011 (with plans for 200 more in 2012), retiring older models.
• Received EPA’s Clean Air Excellence Award for emissions reduction innovation.
• Achieved LEED certification for Union Pacific’s Omaha headquarters.
• Found new homes for 16% of outdated electronic assets, saving nearly 2,500 devices from landfills.
• Recycled or reused 84% of outdated electronic assets.
• Captured and recycled over 4 million gallons of fuel and oil.
• Recycled over 3,000 tons of paper, cardboard, plastics, and other solid waste.

Social Achievements

• Improved public safety at railroad crossings by 9% compared to 2010.
• Established an all-time employee safety record for the fourth consecutive year (1.15 reportable injury rate).
• Added employee and spouse health and wellness options with a new online Wellness Portal.
• Doubled the number of fitness centers available for employee use.
• Donated over $14 million and supported over 2,500 nonprofits.
• Conducted over 8,000 UP CARES outreach and training events, reaching over 700,000 people.
• Launched two new employee resource groups.

Governance Achievements

• Compensation and benefits committee used information from an independent compensation consultant to ensure competitive salaries and benefits.

Climate Goals & Targets

Environmental Challenges

• Severe weather (Texas drought and Midwest flooding) forced trains onto indirect routes, increasing fuel consumption.
• Improving economy increased freight volumes, requiring use of older, less fuel-efficient locomotives.

Mitigation Strategies

• Continued commitment to the goal of a 23% reduction in fuel consumption and greenhouse gas emissions from 2000 levels by 2015.
• Exploring new ways to increase fuel efficiency and reduce fuel consumption through innovative locomotive technology, engineer training, and employee development.

Supply Chain Management

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather (drought, flooding)

Transition Risks

• Future legislative and regulatory action on climate change

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Global Reporting Initiative’s 2011 G3.1 Sustainability Reporting Guidelines

Third-party Assurance: Conestoga-Rovers & Associates (GHG inventory verification)

Sustainable Products & Innovation

• Genset switching locomotive technology
• AutoFlex rail cars
• Plant-to-Port transportation service
• Pipeline Express service

Awards & Recognition

• Brunel Awards International Railway Design Competition
• Chrysler Outstanding Support
• ConAgra Mills Rail Carrier of the Year
• Corporate Responsibility 100 Best Corporate Citizens
• Diversity Careers in Engineering and Information Technology Best Diversity Company
• Eastman Chemical Company’s Supplier Excellence Award
• EPA Clean Air Excellence Award
• EPA SmartWay Transport Top Score
• Evergreen Shipping Agency (America) Corporation Vendor of the Year
• Fortune Most Admired Company
• General Motors Supplier of the Year
• Heinz North America Carrier of the Year
• Idaho Association of Commerce & Industry Environmental Excellence Award
• Landstar System, Inc. Intermodal Carrier of the Year
• Military Times EDGE Best for Vets Employer
• National Business Group on Health Best Employers for Healthy Lifestyles
• National Chamber Foundation Hiring Our Heroes Award
• Soy Transportation Coalition Top Performing Railroad
• Texas Commission on Environmental Quality Environmental Excellence Award
• Toyota Top Railroad in On-Time Service Performance and Customer Service
• Toyota Canada Inc. Logistics Partner Award
• Transportation Community Awareness and Emergency Response National Achievement Award
• TTS Rail Carrier of the Year
• WWL Vehicle Services Americas Rail Carrier of the Year
• Association of American Railroads Harold F. Hammond Award

Environmental Metrics

ESG Focus Areas

• Operating Safely
• Strengthening Communities
• Engaging Employees
• Preserving the Environment

Environmental Achievements

• Eliminated an estimated 335 million metric tons of greenhouse gases thanks to customers moving their products by rail compared to truck transportation
• Purchased 200 new fuel-efficient locomotives, replacing older and less fuel-efficient ones
• Introduced an advanced experimental locomotive (UP 9900) to test emissions-reducing technologies
• Put five ultra-low emitting Genset switching locomotives into service in Chicago
• Diverted from landfills an estimated 75 percent of waste
• Added 10 electric vehicles in locomotive shops
• Upgraded nearly 1,300 refrigerated rail cars to reduce diesel particulate matter emissions
• Received the Association of American Railroads’ two most prestigious individual environmental awards

Social Achievements

• Achieved a 1.01 employee reportable injury rate, the best employee safety performance in company history
• Conducted approximately 8,500 UP CARES and other safety events that reached 704,000 people
• Hired approximately 3,900 employees
• Hired more than 900 military veterans
• Invested a company-record $37 billion in our network and operations to support America’s freight transportation infrastructure
• Achieved a best-ever 93 customer satisfaction index score
• Increased the company’s spending with women- and minority-owned suppliers by 16 percent
• Supported more than 2,500 nonprofit organizations
• Awarded 81 memberships in Union Pacific’s Train Town USA Registry to communities
• Conducted 3 million hours of formal employee training
• Trained 200 employees through the company’s Operations Management and Field Management programs
• Celebrated the 25th anniversary of the company’s wellness program
• Increased participation by 25 percent in our System Health Injury Protocol II program

Governance Achievements

• Reached voluntary agreements with 13 unions representing 132,000 freight rail workers

Climate Goals & Targets

Environmental Challenges

• Rail crossing accident rate increased 13 percent in 2012 to 2.38 incidents per million train miles
• Rising rail traffic in the south and growth in highway traffic increased grade crossing incident exposure
• Did not meet the goal to reduce locomotive fuel consumption rate by 1 percent annually from 2011 through 2015

Mitigation Strategies

• Progress identifying and isolating high-risk locations, and improving or removing crossings of concern
• Implemented recommendations from the Environmental Defense Fund Climate Corps
• Added a position solely focused on utility energy efficiency opportunities
• Added 10 electric vehicles to test their viability
• Completed 15 energy-reducing projects focused primarily on lighting upgrades
• Developed initiatives to reduce fuel consumption in vehicles, including the addition of “telematics”

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative’s 2011 G3.1 sustainability framework

Awards & Recognition

• Bloomberg BusinessWeek Top 50 Performing Companies List
• Fortune Most Admired Company
• Association of American Railroads’ two most prestigious individual environmental awards
• Wisconsin, Iowa and Central Illinois Minority Supplier Development Council Award of Excellence
• American Metals Market Logistics/Transportation Provider of the Year
• Soy Transportation Coalition Railroad Report Card Top Performing Railroad
• Union Pacific Distribution Services: Chrysler Partnership Award
• Wallenius Wilhelmsen Logistics Vehicle Services Americas Inc Provider of the Year
• Wallenius Wilhelmsen Logistics Vehicle Services Americas Inc Provider Recognition Award for Rail Services
• Union Pacific Foundation: Association of Fundraising Professionals Oklahoma Chapter’s Outstanding Philanthropic Foundation of the Year
• Creighton University Presidential Medallion
• State of Illinois Proclaimed July 1, 2012, Union Pacific Railroad Day
• General Motors Supplier of the Year
• Lowe’s Home Improvement Rail Carrier of the Year
• Newmont Mining Corporation North American Supplier of the Year
• Toyota Logistics Services President’s Award for Top Rail Transportation Provider
• Toyota Logistics Excellence Award for On-Time Service Performance
• Toyota Logistics Excellence Award for Customer Service
• Women’s Transportation Seminar (WTS) Greater Chicago Chapter Employer of the Year
• National Business Group on Health Best Employers for Healthy Lifestyles
• GI Jobs America’s Top Military-Friendly Employer
• Military Times EDGE 40 Best for Vets Employer

Environmental Metrics

ESG Focus Areas

• Operating Safely
• Strengthening Communities
• Engaging Employees
• Preserving the Environment

Environmental Achievements

• Decreased fuel consumption rate by 1% compared to 2013
• Customers eliminated an estimated 35.8 million metric tons of greenhouse gases by choosing rail over truck transportation

Social Achievements

• Increased spending with minority- and women-owned businesses by 5% compared with 2013, to more than $500 million
• Hired over 1,700 veterans, including more than 160 disabled veterans
• Held 13,580 UP CARES events, reaching more than 629,500 people

Governance Achievements

• Maintained high ethical standards through training on Statement of Policy on Ethics and Business Conduct
• Received numerous awards and recognitions (Forbes’ America’s Most Reputable Companies List, Barron’s ‘World’s Most Respected’ Companies List, Fortune’s Most Admired in Industry List, etc.)

Climate Goals & Targets

Environmental Challenges

• Significant weather disruptions challenged network performance
• Achieving zero accidents on railways requires further work (although derailments decreased by 7% from 2013 to 2014)
• Building a diverse workforce remains a focus, with opportunities to further deepen relationships with the veteran community

Mitigation Strategies

• $4.1 billion 2014 capital program to strengthen operations and invest in the future
• Continued investment in training, innovative technologies, and railway safety awareness
• Multi-media, bilingual public safety campaign encouraging safe behavior around railroad crossings
• Development of technologies to improve railway safety (telematics, in-cab cameras, etc.)

Supply Chain Management

Supplier Audits: 6,000 customer tank car security and safety inspections annually

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Temperature extremes
• Severe weather events

Transition Risks

• Regulatory changes

Opportunities

• Increased fuel efficiency

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: LEED-EB Silver certified (Omaha headquarters)

Third-party Assurance: Conestoga-Rovers & Associates (GHG inventory)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards and recognitions listed in the report

Environmental Metrics

ESG Focus Areas

• Operating Safely
• Strengthening Communities
• Engaging Employees
• Preserving the Environment

Environmental Achievements

• Reduced fossil fuel emissions (scopes 1 and 2) from 12,666,733 metric tons in 2014 to 11,683,549 metric tons in 2015.
• Improved fuel efficiency (despite a decline in heavier commodities), though specific figures are not consistently presented throughout the report.
• Purchased 100 Tier 4 locomotives, reducing particulate matter emissions by up to 90% and oxides of nitrogen emissions by up to 80% compared to pre-EPA standard locomotives.
• Added the first Generator-Set (Genset) switching locomotives certified to a Tier 4 standard to the locomotive fleet.
• Diverted 68% of waste from landfills (707,000 tons out of 1.04 million tons).

Social Achievements

• Became the safest Class I railroad in the U.S. based on reduced employee reportable injuries.
• Conducted more than 15,000 rail safety presentations to over 600,000 people.
• Launched social media campaigns to increase rail safety awareness.
• Increased spending with minority- and women-owned businesses to $423 million.
• Recognized as a Military Friendly Employer and a finalist for the Lee Anderson Veteran and Military Spouse Employment Award.
• Implemented the Managing Agreement Professionals for Success (MAPS) program to address rules violations.

Governance Achievements

• Updated the Policy on Ethics and Business Conduct and introduced it to employees during Ethics Awareness Week.
• Enterprise risk management process is dynamically monitored and reported to the board of directors.

Climate Goals & Targets

Environmental Challenges

• Overall economic conditions, uncertainty in energy markets, and the strength of the U.S. dollar contributed to a challenging 2015.
• Volume declines in several commodity shipments offset volume growth in others.
• Decreased fuel efficiency due to a decline in heavier, more fuel-efficient commodities.
• Federal law requiring train horns at crossings can affect nearby communities.
• Need to improve workforce diversity.

Mitigation Strategies

• Responding to market uncertainties with resiliency to support customers and pursue new business development opportunities.
• $4.3 billion capital program to strengthen U.S. transportation infrastructure.
• Investing in 100 Tier 4 locomotives and Genset switching locomotives to reduce emissions.
• Working with communities to establish quiet zones (while acknowledging safety concerns).
• Implementing recruiting initiatives to bolster employee diversity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, flooding)
• Temperature extremes impacting employee work and rail maintenance

Transition Risks

• Regulatory changes (EPA emissions standards)
• Market shifts (commodity demand)

Opportunities

• Development of energy-efficient products and technologies (e.g., Tier 4 locomotives, LNG fuel)

Reporting Standards

Frameworks Used: Global Reporting Initiative’s G4 Guidelines

Certifications: Null

Third-party Assurance: GHD (for greenhouse gas inventory)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Tier 4 locomotives
• Genset switching locomotives

Awards & Recognition

• CDP S&P Climate Disclosure Leadership Index
• Diversity Journal’s 25 Most Influential Companies for Veteran Hiring
• Forbes’ Best Employers List
• Fortune’s Most Admired in Industry List
• LEED Gold Certification for Santa Teresa Intermodal Ramp buildings

Environmental Metrics

ESG Focus Areas

• Operating Safely
• Strengthening Communities
• Engaging Employees
• Preserving the Environment

Environmental Achievements

• Reduced locomotive fossil fuel emissions (Scope 1) to 9,913,870 metric tons from 10,834,984 metric tons in 2015.
• Improved fuel efficiency rate by 0.8 percent.
• Reduced energy consumption by more than 4 million kWh.
• Diverted approximately 67 percent of waste from landfills.
• Reduced water usage to 1.25 billion gallons from 1.54 billion gallons in 2015.

Social Achievements

• Achieved best annual employee safety performance in 154-year history with a 14 percent improvement in the reportable injury rate.
• Donated $2.3 million to non-profit organizations.
• Increased diversity efforts, including hiring 4% more women into the Operating Management Trainee program.

Governance Achievements

• Met American Chemistry Council’s Responsible Care® Management System certification requirements for the 20th consecutive year.
• Maintained open communication with regulatory officials and stakeholders.

Climate Goals & Targets

Environmental Challenges

• Decreased freight volumes impacting fuel efficiency and emissions.
• Extreme weather events causing increased rail maintenance costs and service interruptions.
• Suicide incidents on Union Pacific railroad tracks.

Mitigation Strategies

• Implementing Positive Train Control (PTC) to prevent accidents.
• Strengthening network resiliency to extreme weather events.
• Hosting the inaugural Rail Summit Conference on Suicide Prevention and implementing a system-wide Suicide Awareness Day.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity program
• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes related to emissions

Opportunities

• Growth in renewable energy

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: Responsible Care® Management System

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Arrowedge (drag reduction device for trains)

Awards & Recognition

• No. 1 in Fortune’s Most Admired among trucking, transportation and logistics companies
• Forbes’ 100 Most Trustworthy Companies
• America’s Top Military-Friendly Employer
• Best for Vets Employer
• Globally Certified Healthy Workplace
• Top Green Provider
• CDP’s Climate Leadership Index

Environmental Metrics

ESG Focus Areas

• Building Responsible Foundations
• Investing in Our Workforce
• Driving Sustainable Solutions
• Championing Environmental Stewardship
• Strengthening our Communities

Environmental Achievements

• Reduced fuel consumption rate for the third year in a row, to best-ever levels
• Increased use of bio- and renewable-diesel fuel
• Set an absolute GHG reduction target approved by the Science Based Targets Initiative to reduce absolute scope 1 and 2 and locomotive well-to-wheel GHG emissions from our operations 26% by 2030 against a 2018 baseline.
• Generated an estimated 1,077,503 tons of waste; 604,801 tons (approximately 56%) was diverted from landfills
• Implemented stormwater pollution prevention plans at about 270 facilities, and spill prevention control and countermeasure plans at about 140 facilities
• Operates about 90 wastewater treatment facilities system-wide that capture and treat process water from equipment washing, maintenance activities, and other railroad operations

Social Achievements

• Increased diversity of the Board of Directors
• Increased community engagement through Foundation efforts
• Launched Planet Tracks business resource group focused on sustainability
• Supplier spending with diverse suppliers grew 23% from 2020 to 2021 and has more than doubled since 2017
• Rolled out The How Matters training to its entire workforce, with a 98% completion rate.
• Entered into a Memorandum of Understanding (MoU) with the Coalition on Human Trafficking (CoHT)

Governance Achievements

• Implemented The How Matters, our policy on Ethics and Business Conduct
• Implemented an industry-leading qualitative cybersecurity risk management process

Climate Goals & Targets

Environmental Challenges

• Reportable personal injury incidents rate per 200,000 employee-hours of 0.98 increased 9% from 2020
• Reportable equipment incident rate of 3.80 per million train miles increased 7%
• Supply chain challenges impacting diverse supplier spending growth

Mitigation Strategies

• Acquired services of a third-party safety expert
• Reassessing the efficacy of safety programs
• Revisiting safety programs to ensure they support training and compliance
• Creating better dashboards to focus efforts
• Improving data collection and reporting on contractor incidents
• Implementing Amazon’s digital procurement processes to drive diverse spending
• Crafting six Key Performance Indicators (KPIs) to better guide supplier diversity goals

Supply Chain Management

Supplier Audits: 100% of strategic suppliers in 2021

Responsible Procurement

• UP Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs, TCFD, CDP

UN Sustainable Development Goals

• Good Health and Well-being
• Quality Education
• Gender Equality
• Decent Work and Economic Growth
• Industry, Innovation and Infrastructure
• Reduced Inequalities
• Sustainable Cities and Communities
• Responsible Consumption and Production
• Climate Action
• Life on Land

Union Pacific aligns its business efforts with the UN Sustainable Development Goals to make the greatest impact.

Awards & Recognition

• Fortune's Most Admired Companies
• Newsweek's America’s Most Responsible Companies
• Diversity Inc.'s Top 50 Companies for Diversity
• Human Rights Campaign’s Corporate Equality Index
• EcoVadis Bronze Sustainability Rating
• CDP Supplier Engagement Leaderboard
• CPA-Zicklin Index Trendsetter
• Refinitiv’s Top 100 Companies
• HIRE Vets Gold Medallion Recipient
• VIQTORY’s Military Friendly Employer list
• Diversity MBA's 50 Out Front
• Training Magazine's Training Top 100
• Vets Indexes 4 Star Employer
• HRAM IDEAL Award winner
• Vault's Best Finance Internships

Environmental Metrics

ESG Focus Areas

• Health, Safety & Well-being
• Business Ethics and Conduct
• Cybersecurity
• Risk Management & Internal Control
• Human & Labor Rights
• Employment Practices & Development
• Diversity, Equity & Inclusion
• Emissions & Energy Use
• Climate Change
• Waste Management & Recycling
• Responsible Sourcing
• Socio-economic Impact
• Infrastructure Investment & Protection
• Stakeholder Engagement
• Community Engagement
• Land Rights & Management

Environmental Achievements

• Reduced total derailments by 21% compared to 2019
• Reduced track-caused derailments by 55% in the last 10 years
• Diverted approximately 93% of railroad ties for energy recovery
• Repaired over 132,800 individual parts, avoiding over $400 million in purchasing costs

Social Achievements

• 99% of employees completed The How Matters ethics training
• Increased people of color representation by 1.5 percentage points
• Community Ties Giving Program invested $24.1 million
• Hired nearly 100 Second Chance candidates through partnership with The Manufacturing Institute

Governance Achievements

• Implemented an industry-leading qualitative cybersecurity risk management process
• No material disruption of operations due to cyber threats or attacks in 2022
• Published a Biodiversity Statement and partnered with The Nature Conservancy for conservation projects

Climate Goals & Targets

Environmental Challenges

• Safety performance struggled to make significant improvement toward world-class safety performance from 2018-2022
• Supply chain challenges, economic uncertainty and labor negotiations in 2022
• Progress toward 2030 female representation goal remains challenging

Mitigation Strategies

• Refreshed approach and evolved safety practices and tools
• Accelerated recruitment efforts and exceeded hiring goals in 2022
• Investing in several avenues to decrease emissions from locomotive operations, including operating efficiencies, biofuels and battery-electric locomotives
• Reassessing Scope 3 value chain emissions data sources and inventory methodologies

Supply Chain Management

Supplier Audits: 30 strategic supplier inspections; 42 strategic supplier reviews; 100% of targeted suppliers participated in supplier questionnaire

Responsible Procurement

• Sustainable Procurement Statement
• Supplier Code of Conduct
• Sustainability questionnaire for top suppliers
• Category risk assessments including human rights and environmental risks

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Wildfire

Reporting Standards

Frameworks Used: GRI, UN SDGs, SASB, TCFD, CDP

Certifications: American Chemistry Council’s Responsible Care Management System (RCMS)

Environmental Metrics

ESG Focus Areas

• Safety
• Service
• Operational Excellence
• Climate Change
• Diversity, Equity & Inclusion
• Community Engagement
• Environmental Stewardship
• Responsible Sourcing
• Business Ethics
• Cybersecurity

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 0.8% vs. 2022; cumulative reduction of 19.1% since 2018 baseline.
• Reduced Scope 3 GHG emissions (target categories) by 0.8% vs. 2022; cumulative reduction of 12.1% since 2018 baseline.
• Increased full-year average biofuels utilization to 6.1% (vs. 4.5% in 2022).
• Repaired 141,487 parts, avoiding over $639 million in purchasing costs and 27,205 tons of new steel.

Social Achievements

• Reduced year-over-year serious injuries by 15%.
• Zero work-related fatalities in 2023.
• Reportable derailment rate declined 6% vs. 2022.
• Increased number of diverse suppliers by 6%, total procurement spend with diverse suppliers increased to $828 million (2% increase).
• 100% of local community grants went to DEI-aligned organizations.
• Reached paid sick leave agreements with all 13 unions.
• Reached agreement with BLET for more predictable schedules for locomotive engineers.
• Reached agreement with SMART-TD to maintain two-person crews on trains.

Governance Achievements

• Established updated sustainability governance structure in 2023.
• Completed updated materiality assessment using a double materiality approach.
• Tied a portion of executives’ annual incentive cash bonuses to sustainability-related KPIs (safety, customer service, employee engagement, renewable fuel utilization).

Climate Goals & Targets

Environmental Challenges

• Regulatory uncertainty.
• Progress on female representation in workforce is flat.
• Procurement difficulties for battery-electric locomotive batteries.
• Cost and supply challenges for biofuels.
• Climate change impacts (extreme weather events).

Mitigation Strategies

• Proactive monitoring of regulatory and legislative developments.
• Reviewing attrition rates, developing diverse candidate pools, removing predispositions from hiring, creating an environment of belonging.
• Adjusted locomotive order to four units, expected delivery in 2026.
• Collaborating with industry and fuel suppliers to advocate for market-based solutions for biofuels.
• Acute weather readiness plans, emergency response plans, inspection programs, rapid-deployment teams, infrastructure investments.

Supply Chain Management

Supplier Audits: 29 strategic supplier inspections, 28 strategic supplier reviews in 2023; 100% of targeted suppliers participated in sustainability questionnaire.

Responsible Procurement

• Supplier Code of Conduct
• Sustainability questionnaire for Tier 1 suppliers
• Sustainability KPIs incorporated into supplier scorecards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding, wildfires, drought

Transition Risks

• Regulatory changes, market shifts, supply chain disruptions related to alternative fuels.

Opportunities

• Development of energy-efficient products and services, growth in renewable fuels shipping business, modal shift to rail.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001-2015

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Union Pacific's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• Hybrid battery-electric locomotives, hybrid cranes

Awards & Recognition

• Dow Jones Sustainability World Index member
• DiversityInc Top 50 Companies for Diversity
• Disability:IN Best Place to Work for Disability Inclusion
• Human Rights Campaign’s Best Places to Work for LGBTQ+ Equality
• Fortune Magazine’s World’s Most Admired Companies
• The Home Depot Rail Carrier of the Year